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| | October 28, 2008
Financial Update
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| | Calgary, AB (October 28, 2008) Prime Meridian Resources Corp (TSX-V, PMR: FRA, DYD: "Prime Meridian" or "Company") is providing an update of its finances and strategy for its continuing operations.
In the spring Prime Meridian announced it was suspending drilling due to spring break-up conditions, as well as to advance discussions on its projects with possible partners and to conserve funds. Given the market conditions and Prime Meridian's treasury it was decided not to resume drilling until the overall situation improved or an option/joint venture agreement(s) was concluded with a suitable partner for specific projects.
Prime Meridian has successfully reduced its monthly costs. The current working capital is approximately US$100,000 which at current expenditure levels will be sufficient only until very early in 2009. The recent extraordinary market conditions have made it unrealistic to effectively address this situation through normal means. The Company has also reviewed its projects, prioritized them and is confident that a number of them continue to be of superior quality and merit significant ongoing exploration programs. Prime Meridian has undertaken a strategy of discussing its projects with potential option/joint venture parties. These discussions have continued to advance with several parties however for a number of reasons, including the current market conditions, the Company has not concluded any agreements to date. Prime Meridian remains confident that the ongoing discussions will result in a suitable agreement(s), however there is no assurance when or if this will actually occur. Prime Meridian remains committed to exploring and developing its assets and to continuing its project development in the Midcontinent Rift System.
In light of the Company's limited working capital and desire to maintain its current high priority project inventory and acquisition of strategic land parcels into 2009 Prime Meridian has entered into negotiations with its major shareholder to provide a loan to fund its ongoing operations. The intent, assuming satisfactory terms are concluded, is to provide Prime Meridian with sufficient operating funds well into 2009. A press release will be issued when and if an agreement is concluded.
As part of its cost savings measure Prime Meridian has agreed with BMK Partners Inc. to terminate its investor relations, corporate communications and marketing services contract. Prime Meridian appreciates the efforts made by BMK on behalf of Prime Meridian.
Prime Meridian Resources Corp. is a Canadian exploration company focused on projects it has developed since 2000 within the Midcontinent Rift System in Michigan and Minnesota. This rift system consists of deep-seated structures and act as conduits permitting the intrusion of mantlederived magmas (mafic and felsic) and permit the development of magmatic nickel-copper and IOCG mineralization. Prime Meridian is continuing the exploration of projects it has developed with the goal of achieving a discovery in an area that has historically produced large and valuable base and precious metal mines.
Prime Meridian Resources Corp.
/s/"John Boreta"
President
For further information please refer to our website
John Boreta
Telephone: (403) 539.0192
info@primemeridianres.com
Web Site:www.primemeridianres.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Certain disclosures in this release, including management's assessment of Prime Meridian's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Prime Meridian's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Prime Meridian expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. |
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